Legal Action against Employee not Serving Notice Period in India

Table Of Content

• Is it mandatory to serve notice period?
• Can a company take legal action against an employee?
• Legal actions an employer can take against an employee
• Can a company send a Legal Notice to an employee?
• Supreme court of India’s judgment on Notice period
• Conclusion

There are rules and regulations that every company abides by and works accordingly. The employees have to also work by abiding by those rules.It keeps a work and environment balance in the companies. When an employee wants to join an organization he/she has to go through a screening and interviewing rounds for that. After getting selected that employee is required to go onboarding procedure.

The employees have to serve notice period before leaving the organization so that the organization has a time to find a suitable substitute on the behalf of the employee who is leaving but naturally there are employees who do not serve their notice period. Now you might have gotten an idea where we are taking this. Yes, in this blog we will be discussing legal action against employees not serving notice periods in India, so let’s start.

Is it mandatory to Serve Notice Period?

Yes, it is necessary to serve notice period in all the organizations however the employees have made a choice whether they want to serve it or not. Not serving notice period has its own demerit that employees do not pay heed too. Unlike other startup organizations a well known renowned company asks for a ‘relieving letter’ as a proof of employment. An employee will only get it if he/she has served notice period efficiently. 

When an employee joins an organization the letter is signed between both employer and employee ‘the Letter of Appointment’ all the clauses and cases are mentioned regarding the job profile and notice period/termination. If the employee signs the letter then he/she must abide by the same as well. Though no employer can be forceful with any employee regarding the Notice Period in compensation an employee can get salary deducted for not serving notice period. Perhaps if the employee does not share a goodwill with the organization, if they want they can take legal action against an employee not serving notice period in India which is one of the rules.

Can a Company take Legal action against an Employee?

Absolutely yes, if the employee has their rights throughout their job life then there are certain rights that the employer has if someone leaves a job without informing. An employer has the full right to take legal action against employee who leaves without informing. If an employee doesn’t provide the required amount of notice. An organization may decide to file a lawsuit, depending on the details of the case and the terms of the employment contract. 

What Legal Actions can an Employer take against an Employee for not Serving Notice Period?

The notice period that follows an employee’s departure from an organization acts as a transitional period, giving both the employer and the employee time to make the appropriate arrangements. There are a number of outcome if an employee gives resignation without notice period indian law:

• Action taken for breach of contract:The notice period requirement is commonly specified in the employment contract. If this is broken, it might be considered a breach of contract. An employer may terminate or file a lawsuit against an employee who is not serving notice period. the employers can also send a legal notice against employee for not serving Notice period.
• Holding back the pay: If the employer receives an employee resignation without serving notice period. The employer might hold back the salary of the employee for that month.
• Relieving Letter: The employer also withholds the relieving letter of the employee because there are companies who do not hire without receiving the relieving letter. It gives an idea to the companies about performance and confirms the exit of the employee from his previous organization.
• Fees and Damages: Should the employer choose to file a lawsuit, the worker may be responsible for paying the attorney’s expenses. In addition, if the court finds in favor of the employer, the employee may be required to pay damages, which, depending on the details of the agreement and the estimated harm to the business, may be significant.
• Goodwill Damage: Neglecting to complete the notice period might damage an employee’s standing in the workplace. This could be interpreted by potential employers as a lack of professionalism, which could hinder career advancement.
• Blacklist: There are professionals who share an informal connection where they might share the information regarding the employees who do not have served the Notice period and misconduct everything to each other which leads that employee to a blacklist. Where if that employee tries to apply for a job in any of the organization and the HR already knows about his/her behavior so he/she will be rejected on the spot. A company blacklists you for not serving notice period which reflects in your future and gives you a hard time in finding a job in an organization as well.

Can a Company send a Legal Notice to an Employee?

Yes they can send a Legal Notice as a warning letter to employees for not serving notice period. It is the best way to take out your means. A Legal Notice is referred to a written warning in which the party writes down the whole scenario along with the compensation that the receiving party has to do in order to settle the things between them. 

If an employee gets a Legal Notice from the company it would be better if they give the response to the Legal Notice right away by clearing their points and keep it as a defense proof to show in the court if the matter goes there. It is much better if the Legal Notice is detailed because it would be easier for the employee to clear things up. If there is a valid reason for not serving notice period then it should be known to the company and mentioned in the notice as well. 

What is the Supreme Court of India’s Judgment on Notice Period?

The Supreme Court of India has given judgment on Notice Period in various situations. Public takes Notice Period casually but there are companies who actually follow the protocols of Notice Period seriously. There are many famous cases related to the supreme court judgment on employee notice period. 

Such a case of Sanjay Jain v. National Aviation Co. of India Ltd., (2019) 14 SCC 492: Under this case the Supreme Court supported the employee on resigning after serving his notice period and gave their verdict that Resignation is the right of every employee. No one can force any employee to serve them in any case.

You can read our detailed blog on Legal Notice vs Court Notice to know the major differences between these two kind of notices.

Conclusion

Notice period is a crucial part of employment contracts in India, and breaking it can have serious consequences for both the employer and the employee. If an employee quits without providing the required amount of notice, the employer may pursue legal action against them. In the lawsuit, you could ask for damages, an injunction, unpaid pay, or to put the employee on a blacklist. The organization should take the necessary steps, such as providing Legal Notice, following up, and maintaining proper records, before initiating legal action against employees not serving notice period in india. 

Conversely, the worker may face unfavorable outcomes such as a damaged reputation, unpaid bills, and legal action. Employers should make sure that the notice duration is clearly mentioned in the contract, and employees should adhere to the notice period in order to avoid any legal issues and maintain a good reputation in the job market.